President Bola Tinubu has requested legislative authorization to secure $2.85 billion in external financing through two separate instruments aimed at funding the 2025 budget and refinancing existing debt. The request was formally presented to the House of Representatives during Tuesday’s plenary session by Speaker Abbas Tajudeen.
The comprehensive funding package includes $2.347 billion from international capital markets, comprising $1.229 billion for new borrowing as outlined in the 2025 Appropriation Act and $1.118 billion to refinance maturing Eurobonds. Additionally, the President seeks approval for Nigeria’s debut $500 million sovereign Sukuk issuance to support critical infrastructure projects.
In his letter to lawmakers, President Tinubu emphasized the legal basis for the request, citing Sections 21(1) and 27(1) of the Debt Management Office (Establishment, Etc.) Act, 2003. The funding strategy aims to bridge the 2025 fiscal deficit while implementing debt management optimization.
“The House of Representatives is kindly invited to issue its resolution allowing the government to raise the amount through any of the following options: issuance of Eurobonds, bridge finance facility from bookrunners, loan syndication, or direct borrowing from international financial institutions,” the President stated.
The President detailed that the 2025 budget provides for N9.28 trillion in new borrowings, with N1.84 trillion (equivalent to $1.229 billion) earmarked for external borrowing. He noted that while all financing options would be explored, the government’s primary approach involves leveraging Nigeria’s established presence in international capital markets through Eurobond issuance.
Regarding the refinancing component, Tinubu explained the necessity of addressing the $1.118 billion Eurobond maturing in November 2025, emphasizing that the move would “avoid default” and align with international best practices in debt management.
The separate $500 million sovereign Sukuk initiative represents a strategic expansion of Nigeria’s funding instruments. The President indicated this debut international Sukuk would build on the successful domestic Sukuk program that has raised over N1.39 trillion since 2017 for road and infrastructure development.
According to the President, the Federal Ministry of Finance and the Debt Management Office will collaborate with transaction advisers to secure the most favorable terms, with final conditions to be determined based on prevailing market conditions at the time of transaction.
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